Running an electronics repair shop is a great gig for anyone with a skill for fixin'. But to keep it running and growing, you need the right insurance to protect you from harm. Working with an independent insurance agent is your answer.
An independent insurance agent can help you find the right coverage for your business and tailor it specifically to your needs. No matter what you specialize in, an independent insurance agent will help you shop multiple carriers to help find the right business insurance to know your business and livelihood are protected. But first, here's a bit more background on the insurance needs of your electronics repair shop.
What Type of Insurance Does An Electronics Repair Shop Need?
Small businesses should start by evaluating the four most common types of insurance:
If someone claims your business actions caused them harm, they could sue you for damages. Even if you accidentally damaged their electronics while performing a repair, you could be forced to pay damages.
Liability insurance pays for damages owed to your customers. It may also cover your legal defense and attorney fees.
Property insurance pays for damages as a result of some common problems, like fire, weather damage, or theft. This type of insurance also covers the personal property inside your business, including machinery, tools, computers, furnishings, supplies, and inventory.
An electronics repair shop may have specialized tools or computerized diagnostic equipment that is expensive to replace. An independent insurance agent can help create a detailed inventory of your property.
Business vehicle insurance
If you have a car or truck that you use exclusively for business purposes, or if someone working for your business uses a company vehicle to make on-site electronics repairs, commercial vehicle insurance is a must.
Your personal auto policy may not cover you if you use your vehicle mainly for business purposes. This type of insurance not only protects your property, but it covers you for damage done to other people's property. With commercial auto insurance, you can choose varying levels of coverage.
Workers' compensation insurance
If you employ fewer than three people in your electronics repair shop, you may not need workers' compensation insurance. Rules about workers' comp policies vary from state to state. In Texas, it is not required. All other states mandate workers' comp insurance for businesses with between three and five employees.
This is another area where you'll need help from an experienced independent insurance agent to understand and comply with your state's rules about workers' compensation insurance.
Do I Need Special Insurance for a Home-Based Electronics Repair Shop?
If your shop is located in a building on the same property as your home, in your garage, or is attached to your home, you still need dedicated insurance to cover your business. A properly insured home-based electronics repair shop has a separate insurance policy from your homeowners coverage.
In fact, a typical homeowners insurance policy probably won't provide enough coverage to keep your business safe from potential financial harm in the event of an accident or other unforeseen event. You may be able to get an endorsement to your homeowners policy to add a small amount of coverage. If your business generates more than a few thousand dollars worth of business each year, it's smart to get a separate policy.
Do I Need Business Insurance if I Don't Have Employees?
Even if you're the only worker in your electronics repair shop, you need the right types of business insurance. The US Census Bureau calls businesses that don't pay any employees nonemployers.
Independent insurance agents are well-versed in helping these types of sole proprietorships thrive by advising them about their insurance options. Without adequate insurance, you risk losing your assets if any number of unexpected events cause damage to your business location or equipment.
What Other Coverages Should I Consider for an Electronics Repair Shop?
Business insurance protects against specific risks associated with day-to-day life as a business owner. Your insurance needs depend on your business structure, whether you have employees, your location, and the size of your business.
Business interruption insurance
If your building is destroyed in a fire and you have to shut down while you rebuild or relocate, business interruption insurance helps cover associated costs. It may pay employees and make rent payments on a temporary location.
There are many events that can lead to making a claim on a business interruption insurance policy. This type of insurance helps your electronics repair shop survive unexpected events outside of your control.
Professional liability insurance
If you provide services to a company or individual and they experience a loss due to your negligence, professional liability insurance, also called errors and omissions insurance, will cover their claim.
Cyber liability insurance
If your payment system or online database is breached, Cyber liability insurance can help pay for the costs of credit monitoring products for your customers, loss of income due to your temporary inability to continue the business, and security system repair needed to prevent future data breaches.
- 12% rise in costs of data breach in past five years
- 67% of the total cost of the data breach happens within the first year
- $150 cost per record exposed in a data breach
Finding the Best Insurance for Your Electronics Repair Shop
Insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.
When it comes time to purchase insurance, they’ll break down all the jargon and explain the nitty-gritty so you understand exactly what you're getting.
And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it all was. How great is that?
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Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. So instead of searching around from company to company, your agent can help simplify the whole process, and let you focus on the business side.
Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Landon Bentham
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